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ARTICLE · 04 SEPTEMBER 2017

Guide To Insolvency Code - Protection ‘From ' Banks/FIs? Or ‘For' Them?

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According to Merriam Webster dictionary, an Insolvent is a person who is a) unable to pay his debts as they fall due in the usual course of business and b) having liabilities in excess of...

IndiaInsolvency/Bankruptcy/Re-Structuring
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Definition

According to Merriam Webster dictionary, an Insolvent is a person who is a) unable to pay his debts as they fall due in the usual course of business and b) having liabilities in excess of a reasonable market value of assets held.

Insolvency is defined as the fact or state of being insolvent.

Insolvency can further be, either cash flow insolvency wherein the debtor suffers from lack of financial liquidity to pay off his debts though the value of his assets may be in excess of his total liabilities or the Balance Sheet insolvency wherein the liquidated value of all the assets would not be sufficient to cover off all the liabilities of the Debtor.

Evolution of insolvency law

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